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General

French govt should ask why Sony hasn't contributed to the cost of the electricity network

Thursday 23 December 2010 | 14:16 CET | Author: Tim Poulus | Market Commentary
The French government has entered the debate over whether over-the-top players like Google should contribute to the cost of infrastructure. This means of course the cost of next-generation access networks, such as FTTH. Almost all the big operators think that the OTT market should contribute to the cost, and Google et al are using their infrastructure without paying.

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Categories: Fixed / General / Internet
Companies: Comcast / Google / Netflix
Countries: France / World
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Another key factor is that Government and regulators try and balance the public/priavte good through policy and regulation. Most operators are regulated, some very heavily, including restrictions on profit levels, pricing, and obligations etc. The OTT players are not. The other parties do not.
John Holland @ 8/3/2011 - 22:29

It's always dangerous to over simplify and I think this Sony analogy while amusing is a gross simplification of something far more complex Really it's a debate about the common good V the commercial good and getting the optimal balance between the two from a societal perspective. The economics of broadband is making it increasingly difficult to have sustainable multi operator infrastructure competition in many countries. Historically the telecom networks, electricity networks, water, gas Etc were built by governments as there was no commercial business case (Massive CAPEX and business case paybacks that were very long 10-20years in some cases) but the common good case was strong in terms of overall economic development and the businesses that the likes of an electrical grid can support. Unfortunately it would seem that we maybe heading back in this direction with broadband where the commercial justification for broadband investment (Fiber, LTE etc) is weak but the common good (i.e. indirect value for a country economically) is great. -Electricity networks don't do QoS and cannot distinguish between devices (yet) maybe that will change in time. -Content companies have traditionally paid for their content to be delivered Some thoughts to add to the discussion Regards John
John Holland @ 8/3/2011 - 10:50

This could be the case for Pushed services...but downloading OTT's (e.g Google) contents is a pure Pull-Service triggered by the end-user of a particular Operator but not by Google. Using he same logic, would the Operators agree to contribute in the cost of OTT's infrastructure... ? I believe Operators are already charging enough to cover such cost and make some profit out accessing the OTT's content..
Kais R. Qusous @ 26/12/2010 - 23:28

Why mixing up Google and Sony??
Ton Smit @ 24/12/2010 - 10:46


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